UK launches formal probe into Goldman Sachs

Tags:

LONDON, April 20 (Reuters) – Britain’s financial regulator started a formal enforcement investigation into Goldman Sachs <GS.N> on Tuesday, four days after U.S. regulators filed a fraud case against Wall Street’s biggest investment bank.
“Following preliminary investigations the Financial Services Authority (FSA) has decided to commence a formal enforcement investigation into Goldman Sachs International in relation to recent SEC allegations. The FSA will be liaising closely with the SEC in this review,” the UK regulator said in a short statement.
The U.S. Securities and Exchange Commission has accused Goldman of hiding from investors the fact that a prominent hedge fund manager was betting against a subprime mortgage product that he helped create. [ID:nN19193616]
(Reporting by Steve Slater; editing by Douwe Miedema) ((steve.slater@reuters.com; +44 207 542 4367; Reuters Messaging: steve.slater.reuters.com@reuters.net))
Keywords: GOLDMAN/